BackThings that you need to check after you invest in mutual funds
Check your account statement. If there's a mistake in your email id, call your fund house and get the mistake corrected
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Recently, a Mint Money reader wrote to us with a peculiar dilemma. She had invested in a few mutual fund schemes; her first ever mutual fund investment. She had duly submitted the forms and the cancelled cheques to register her bank accounts.
Within a week, however, one of the fund houses sent her a text message on the mobile phone: ‘your bank mandate has been changed’. Having no experience of mutual fund investing, she was horrified to get a cryptic message like that. She thought that something was amiss. Her distributor was quick to calm her, telling her that it is routine for some fund houses to confirm the registration of the bank mandate.
Here are a few things to check after you make your mutual fund investments, to make sure that all your details are captured correctly.
Your name and email
This is important, and especially when it comes to long names. Make sure your name is captured correctly and there is no mistake. If your fund house has made a mistake, then you need to send them a copy of the original application form and point it out to them.
Your distributor or adviser can also do this for you as she normally keeps copies of your application forms. Often, a simple phone call to your fund house also works as it too keeps a copy of your forms. The fund house will correct the mistake and send you a new account statement. If you had misspelt the name in the application form, you will need to write a letter to them and provide a proof of name—like your driver’s licence, permanent account number (PAN) card or Aadhaar card—and request a correction.
Mumbai-based distributor Parul Mahesh tells us that in her experience “almost 50% of the times, there is a mistake in recording the investor’s email ID."
She says that many times the investors don’t receive their account statements and then later they realise that the email ID had been recorded incorrectly.
Check your account statement. If there’s a mistake in your email id, call your fund house and get the mistake corrected.
Check address
There are fewer chances of a mistake here but it’s always good to check. As the know-your-client (KYC) process is centralised and standardised, your address is stored with the KYC registration agency (KRA) and then shared with all mutual funds. Typically, your fund house pulls out your data from the KRA records.
However, if you have invested in mutual funds for the first time ever, and you have just done your KYC and it’s still under process, then your fund house takes your address from your application form.
A mistake from your side here, will mean that the fund house records the same. Worse, if there is a mistake in your KRA records, your address will get recorded in all the fund houses where you have invested. In that case, you need to correct your KYC records.
It’s always a good habit to re-check your KYC records. Read here to know how to check your KYC records: https://bit.ly/1pAkF8p. Keep your mobile phone handy to verify the one-time password.
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